Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by
A)reducing the price elasticity of demand.
B)making demand more oligopolistic and less monopolistic.
C)increasing the income effect.
D)reducing fixed costs and increasing the gray marketing effect.
E)shifting the market from a monopoly to pure competition.

Question

Quizplus · Accepted Answer

Brand loyalty reduces the price elasticity of demand, meaning that consumers are less sensitive to changes in price and more willing to pay a higher price for a preferred brand. This can lead to increased revenue and profitability for the firm.

Marketers Spend Millions of Dollars Annually Trying to Create or Reinforce